Buy a Renovated or a Fixer-Upper Home?

Fully Finished or Fixer-upper

You’ve decided to put down roots and purchase a property to call “home.” After factoring in finances, time constraints, and personal preferences, now you’re faced with another big question: should you buy a fixer-upper or a fully renovated home? There are a lot of elements at play when deciding which way to swing, so read on and see what makes sense for you.

Make Your Mark

Fixer-Upper: The beauty of a fixer-upper is that you can make it yours — from the finishes to the floor material, it’s all you. That being said, renovation costs can mount when you’re presented with a myriad of choices at climbing price points. (Marble countertops, anyone?)

Renovated: When you walk into a fully renovated home, most of the design choices have already been made for you. There are newly installed oak shaker cabinets when you prefer a white high-gloss finish, and grey laminate floors when you like tile. But if those aren’t deal breakers, there’s a lot to be said for the convenience and clean-slate state of a move-in-ready home.

Location, Location, Location

Fixer-Upper: Buying the worst house on the best block is the cornerstone for many development companies, and for good reason. People want to live in their preferred neighbourhood and will pay more to do so. Renovating a wreck is an investment.

Renovated: A fully renovated home outside of the most coveted neighbourhoods or those currently under development is also a smart investment option. If you’re willing to sacrifice your usual stomping grounds for a finished basement and a yard, that move could pay off.

High Roller

Fixer-Upper: While a home in need of some TLC will cost you less upfront, renovation invoices (especially unexpected ones) can add up quickly. Make sure there’s enough room in your budget to cover what needs to be done — and be prepared to DIY where possible.

Renovated: Sure, a fully renovated home is going to cost more than the one down the street with a leaky roof and sinking foundations, but you don’t have to organize a crew of roofers or call in the basement specialists. That’s certainly worth something.

Living Arrangements

Fixer-Upper: You’ve taken the plunge and bought the small semi-detached in need of some love (okay, lots of love) and you’re thrilled. But some decisions need to be made; namely, where are you going to live during the renovation process? Living on a construction site is not ideal, but neither is paying rent and a mortgage at the same time. Know your limits.

Renovated: Does moving right into your new home, unpacking your boxes and sleeping on your bed that first night sound good to you? If so, the higher price tag of renovated home may be worth the convenience, versus living with the mess of months of renovations.

Back Up Plan

Fixer-Upper: The main risk of buying a fixer-upper is running out of renovation money without the project in completed. Unexpected costs, sudden loss of income or overspending can all lead to financial trouble, and a half-renovated house is much harder to sell, if you’re looking to recoup your losses.

Renovated: Once you’ve purchased a fully renovated home, your upgrading costs should be minimal for many years to come. The initial price tag may dwarf that of a fixer-upper, but what you invest now will pay off in worry-free home ownership.

Now that you’ve seen the pros and cons of buying a fixer-upper versus a fully renovated home, which way will you go?

A home is the biggest transaction most of us will ever make. That’s why it’s important to work with an experienced and knowledgeable real estate agent. For more than 20 years, RE/MAX has been the leading real estate organization in Canada and beyond. With a presence in over 100 countries and territories, the RE/MAX network’s global footprint is unmatched by any other real estate brand. RE/MAX has always been an industry leader, adopting the latest technology and creating innovative marketing programs. RE/MAX was the first brand to expand its reach world-wide through a revolutionary global listing site, featuring listings from more than 80 countries, displayed in over 40 languages. Closer to home is RE/MAX’s deep commitment to the communities we operate in. Our exclusive Miracle Home Program allows RE/MAX agents to donate a portion of every home sale to Children’s Miracle Network.